FINC5001_apital Markets Corporate Finance_2009 Semester 1_Week 2 FINC 5001 Tutorial Solutions.docVIP

FINC 5001 Capital Markets and Corporate Finance Tutorial Questions and Solutions Week 2 – Preliminary concepts DQ 1 The text refers to three types of financial decision – the investment decision, the financing decision, and the dividend decision. Describe each in detail, and explain how these decisions relate to the corporate objective. Categorise each of the following decisions in terms of whether it is an investment, financing or dividend decision and explain why it is in that category. Corporate managers face three important decisions in their attempt to maximise shareholder wealth. Thes